After the Second World War, several Asian countries including Japan had low wages compared to Australia and New Zealand. These Asian countries however, increased worker education levels faster than Australia and New Zealand. As a result of this investment, economists who adhere to the human capital view of education would predict:

Question

Quizplus · Accepted Answer

The human capital view of education suggests that investing in education will enhance labour productivity. Therefore, as Japan increased worker education levels faster than Australia and New Zealand, it is likely that the productivity of the Japanese workforce increased. This would lead to an increase in wages as employers are willing to pay more for more productive workers. Thus, the correct choice is D.

After the Second World War, Several Asian Countries Including Japan